Globalisation

What Globalisation covers

Globalisation opens Theme 4 and is examined on Paper 1. It covers why some economies are growing so fast, what a country gains from trading, the changes that made the world more connected, and the tariffs, quotas and trading blocs that push the other way.

The 5 subtopics

Each one has its own page.

• Growing economiesWhy emerging economies grow faster than the UK, the factors behind growth in Asia and Africa, the trade opportunities and employment changes growth brings, and GDP per capita, literacy, health and the Human Development Index as indicators.Open →
• International trade and business growthExports, imports and the balance of trade, specialisation and competitive advantage, and inward and outward FDI, its benefits and its forms, including greenfield investment, acquisitions and joint ventures.Open →
• Factors contributing to increased globalisationTrade liberalisation and trading blocs, political change in Eastern Europe and China, reduced transport and communication costs, the growth of transnational corporations and FDI, migration and the global labour force, and structural change.Open →
• ProtectionismTariffs, import quotas, government legislation and other non-tariff barriers, domestic subsidies in their different forms, and how tariffs and quotas differ in the way they restrict trade and whether they raise revenue.Open →
• Trading blocsThe EU single market and its free movement, internal tariffs and the common external tariff, ASEAN and NAFTA, how blocs expand, and the effects on businesses inside and outside them, including trade diversion and trade creation.Open →

What you need to know

Answer each one before you reveal it.

Take Globalisation further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

• Tariff vs Quota

  Tariff: a tax imposed on imported goods. Quota: a numerical limit placed on imported goods.

• Free trade vs Protectionism

  Free trade: international exchange without government barriers. Protectionism: government measures restricting imports or supporting domestic producers.

Questions from this topic

Each one with the model answer underneath.

1. 1

   Why does the UK economy typically have a lower growth rate compared to emerging economies?

   Model answer

   Emerging economies often experience faster GDP growth due to industrialisation and development, whereas the UK is already a mature, developed economy with slower growth potential.

2. 2

   Define an emerging economy.

   Model answer

   A country transitioning from low income to higher income status, characterised by rapid industrialisation and increasing integration into global markets.

3. 3

   What three factors are driving the growing economic power of Asian countries?

   Model answer

   Manufacturing expansion, technological development, and increasing consumer markets.

4. 4

   What factors are contributing to the growing economic power of African countries?

   Model answer

   Natural resource extraction, population growth, and infrastructure development.

5. 5

   How does economic growth in emerging markets create trade opportunities through customer bases?

   Model answer

   It expands potential customer bases as growing markets contain more consumers able to purchase goods and services.

6. 6

   How does economic growth create trade opportunities related to suppliers?

   Model answer

   It provides access to new suppliers and resources in developing regions.

What is inside Levo

Six ways to work the same material.

Globalisation revision questions

What does Globalisation cover in Edexcel A-Level Business?

5 subtopics: growing economies, international trade and business growth, factors contributing to increased globalisation, protectionism and trading blocs. Each one has its own page with questions and model answers.

How is Globalisation organised?

By the Edexcel 9BS0 specification, subtopic by subtopic, so it matches the order you are taught it in.